Post Office Scheme: This scheme is completely safe as it is backed by the Government of India. The investment offers guaranteed returns and can also be tax-advantaged under Section 80C.
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Post Office scheme: If you want a safe investment with guaranteed returns, the Post Office’s National Savings Certificate (NSC) scheme could be an excellent option. An investment of ₹10 lakh in this scheme could earn you up to ₹449,034 in interest upon maturity. This government-guaranteed scheme is not only safe but also offers tax benefits. Let’s explore the full details of the NSC scheme, including its interest rates, tenure, and other important investment considerations.
What is the National Savings Certificate Scheme?
The Post Office National Savings Certificate is a safe and guaranteed investment scheme backed by the Government of India. It is specifically designed for middle-class and small investors. This scheme provides fixed returns over a fixed period and is free from market fluctuations. The investment period is 5 years. The minimum investment amount is ₹1,000. However, there is no maximum limit. You can invest as much as you wish. The interest rate is reviewed quarterly by the Government of India.
Interest Rate and Returns
The Post Office National Savings Certificate currently offers an annual interest rate of 7.7 percent. Therefore, if you deposit ₹10,00,000 in this scheme, you will receive a maturity return of ₹4,49,034 after 5 years. Investing in this scheme has several benefits. It is a risk-free investment and offers fixed and stable returns. Not only this, you also get the benefit of tax savings. In other words, this is a suitable instrument for a secure long-term financial plan.
Who can open an account under the scheme?
According to the official website, investors must be resident individuals in India. Non-Resident Indians (NRIs), Hindu Undivided Families (HUFs), trusts, and companies are not eligible to invest in this scheme.
- Single Account: Any adult can open an NSC account in their own name or on behalf of a minor.
- Joint Account: Two or three adults can open a joint account. Joint ‘A’ Type: The maturity proceeds will be received jointly by all account holders or by the surviving account holder(s).
- Joint ‘B’ Type: The maturity proceeds can be received by either one account holder or the surviving account holder.
- For Minors: A guardian can open an NSC account on behalf of a minor child.
- A minor aged 10 years or above can open an NSC account in their own name.
- For Mentally Unsound Persons: A guardian can open an account on their behalf.
Read more: FD Rates: HDFC Bank has also reduced FD rates, know what the new rates are.
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